Serbia is a sovereign state, an orthodox country, situated at the crossroads between Western and Eastern empires, covering the southern part of the Pannonian Plain and the central Balkans. Serbia is a country on southeast Europe’s Balkan peninsula with vast northern plateaus and mountains with ski resorts to the south. Its capital is Belgrade was held successively by the Roman, Byzantine, Ottoman, and Austro-Hungarian empires. People are friendly to foreigners, well educated, with knowledge of both English and Russian languages. Living costs are low, especially out of Belgrade, with healthy organic food specialties, unique in the world. Good infrastructure and geographic position makes it good choice for world travelers. Weather is characterized by short winters, hot summers and mild springs and autumns. Serbia has continued its path toward EU membership: EU negotiation process officially started, ready for accession by 2020. Serbia has regained its position as the top investment destination country in the world, measured by the number of jobs relative to the size of the population.* *According to IBM Global Location Trends 2014 report, IBM Institute for Business Value Serbia is the only country outside of the ex-USSR States that has a Free Trade Agreement with Russian Federation. On WB Doing Business List, Serbia moved up by 32 places in 2016, and is now ranked 59th globally. Belgrade was named a City of the Future in Southern Europe. by Financial Times
What banks can be considered?
As the main bank at the moment we are considering UniCredit, but you can open an account with a local company or a branch of a foreign company in most banks in Serbia. The client will be able to decide on the spot (there are more than 20).
Many large banking groups around the world recognize the potential of Serbia. Below is the list:
Western Europe: Intesa Bank, UniCredit, Erste, Raiffeisenbank, Societe Generale
Russia: Sberbank, VTB, Expobank
United Arab Emirates: Mirabank
USA: Addico Bank, owned by an American investment fund.
China: Bank of China
In what way should the newly created Serbian legal entity be kept?
1. We offer mini family office services for the convenience of the client, that will provide everything you need for your legal entity. However we offer all kinds of additional services, the cost of which depends on the wishes of the client.
2. Estimated costs of the company for 1 year:
• Accountant services: minimum 600 euros / year. Depends on activity.
• Contributions for social insurance: 1200 euro / year
• Rental of premises from 2400 euro / year
• Irregular expenses – receipt of correspondence, selection of premises and other expenses, 600 euro / year
• Individual medical insurance from 300 euro / year
• The total amount is a minimum of 5100 euros / year.
Is it possible to open a non-resident bank account of a legal entity, create a Serbian company or a branch of an existing legal entity (with a new, resident account) remotely?
Yes. We will prepare the English text of the Limited Power of Attorney of the lawyer. You must certify this document from any notary and send it back, with an apostille and other necessary documents.
In what way can we continue to use existing legal entity, at the same time using all the advantages of the Serbian system?
We offer a unique solution. A foreign company can operate in Serbia through the registration of its business in the Serbian registry. Thus, a foreign company can obtain the status of residence but without forming a new legal entity.
The process runs quickly. With limited power of attorney, this can be done within three days, without your presence. Bank account can be opened in less than 3-4 days. In total, it takes about seven days. Depending on the type of incoming payments, taxation may be close to 0%. Even if you need to pay corporate tax, it’s only 15%.
If you want to avoid a painstaking bureaucratic process, changing officials of an offshore company and do not want to wait a few months to open your non-resident bank account, this is perfect solution for you.
On what grounds can you get a residence permit in Serbia?
After registering a new company or branch of your existing legal entity, you get a residence permit in Serbia (subject to submission of relevant documentation). Also, one of the ways to get a residence permit is by purchasing a real estate.
Our team is able to ensure the implementation of each of these methods.
What are the advantages of Serbia in the framework of international planning?
- 5000 EUR for company with residence. Yearly expenses 5000 EUR with rented apartment included.
- 3000 EUR for residence with real estate purchase (house can be bought as low as for 10.000 EUR). Yearly expenses 1000 EUR
- No need to report companies outside Serbia
- No need to report personal bank accounts outside Serbia
- No need to report property and real estate outside Serbia
- No CRS. Serbia still did not sign CRS.
- Only obligation is to report personal income that you had as physical person on worldwide level.
3. Residency in EU country in 5 years
- According to EU officials Serbia will become member of the EU in 5 years. This will give you opportunity to travel and work Visa free inside EU. It is easier to get EU visa as Serbian resident. Serbians do not need Schengen visa.
4. Banking system without CRS in western European banks for branches in Serbia:
- Personal account opened in couple of hours. Easy and client friendly compliance.
- Company account opened in 3-5 working days.
5. Family reunification residence possible. Wife and children can easily become residents in Serbia.
What are the financial Benefits and Incentives?
- Cash Grants
- Corporate Income Tax Relief. Tax holiday begins once the company starts making a profit.
- Payroll Tax Incentives – up to 75% of on salary social security and taxes
- Double Taxation Avoidance. Republic of Serbia has 54 effective double taxation agreements in place that cover income, capital and property, with most European countries, Russia, Ukraine, Belarus, Canada, UK and UAE etc.
- 14 Free Trade Zones, more than 200 Multinational companies, €5 billion turnover in 2015
What is the Company Taxation System?
1. Taxation of companies:
- Corporate Tax 15 %
- Dividend Tax 15%
- Possible use of large double taxation agreements network with 54 countries
- In case when representative office receives funds from the parent company – 0%
2. Personal taxes based on yearly worldwide income. (Data for 2015)
- 0% for income bellow 18.000 EUR
- 10% for income between 18.000 EUR and 53.000 EUR
- 15% for more than 53.000 EUR
- Deductions available up to 50% of taxes.
- Possible use of large double taxation agreements network.
- Tax declarations must be submitted in mid of May in the year following fiscal year.
- No need to report personal accounts abroad
- Not necessary to report controlling company abroad
3. Real Estate tax:
- Progressive and depending from location, usually not more than 0,4%.
4. Wealth tax: 0%
5. Inheritance and gift tax: 1,5% – 2,5%
Deductions available in case of family inheritance.
6. VAT: 20%
- Many of big worldwide banking groups have recognized potential of Serbia. See list below:
- Western Europe: Banca Intesa, Unicredit, Erste, Raiffeisen bank, Societe Generale
- Turkey: Halkbank
- Russia: Sberbank, VTB, Expobank
- UAE: Mirabank,
- USA: Addiko bank owed by US investment fund.
- China: Bank of China
7. A special tax of 3-5% on income up to 50 000 euros for registered entrepreneurs.
Main advantages of Serbia
1. Availability of High Quality Labour
- 5 University centres across the country
- Language Proficiency (Serbia was ranked 4th out of the 76 countries in Business English proficiency by BEI*. *Business English Index, Global English Corporation, 2012).
2. Competitive Operating Costs
- According to EUROSTAT, Serbia has the lowest costs of electricity, gas, other fuels and landline telephony among 37 European states.
- 200-400€/m2 (Average Building Cost)
- Average salary 400 EUR.
- Accountant services: minimum 600 euros / year. Depends on activity
- Contributions for social insurance: 1200 euro / year
- Rental of premises from 2400 euro / year
3. Customs Free Access to 1.1bn Consumers
- EU: 506.8mn Consumers, 66% of Total Exports
- Russia, Kazakhstan, Belarus: 171.1mn Consumers, 5.9% of Total Exports
- CEFTA: 20.1mn , Consumers, 18.6% of Total Exports
- Turkey: 76.7mn Consumers, 1.9% of Total Exports
- EFTA: 13.6mn Consumers, 0.9% of Total Exports
- US: 321.4mn Consumers, 1.9% of Total Exports
4. Political and Economic Stability
- Over the past 4 years Serbia took steps to further improve political and economic stability, since 2014, the Government of the Republic of Serbia has taken steps towards reducing the government debt, including greater fiscal responsibility, reform of the public administration,
5. Optimal Geographic Location
- By Car: Highway from Budapest through Belgrade towards Sofia, Istanbul and Thessaloniki.
Highway from Germany through Austria, Slovenia, Croatia to Belgrade
New highway is being built to Montenegro.
- By boat: Danube, a waterway connecting Western and Central European countries with the countries of South-Eastern and Eastern Europe.
- By Plane: Nikola Tesla – Belgrade Airport – 20 minutes away from Belgrade downtown
Montenegro < 45min
Bucharest, Istanbul, Prague, Rome, Vienna, Zurich, Munich, Athens <1.5h
Berlin, Dusseldorf, Frankfurt, Kiev, London, Paris, Amsterdam <2.5h
Moscow, Dublin, Barcelona <3h
- Close to seaside. Adriatic see is just 45 minutes far by plane.
6. No sanctions to Russian Federation; Christian Orthodox country
- More than 50 spa and health resorts
- 4 ski centres
- Close to seaside. Adriatic see is just 35 minutes far by plane. Greek seaside is 1 hour flight.
- Variety of international primary and secondary schools such as: British school, French school, Russian school, International school, American school with fees smaller than equal schools in the western world
- University of Belgrade, founded in 1808 is in the top 300 Universities according to Shanghai ranking list